How Bankruptcy Can Help Your Credit Score

A common misconception is that filing for bankruptcy is the end of your financial road, but it can actually provide a path to rebuilding your credit. While bankruptcy can initially lower your credit score, it also offers a fresh start by eliminating or restructuring overwhelming debt. Without the burden of these debts, you can focus on making timely payments and responsibly managing new credit. Often before filing bankruptcy your credit score has already been substantially reduced by mounting debt and missed payments, so the debt forgiveness when you file bankruptcy can actually help INCREASE your credit score.

For many, bankruptcy stops further damage caused by missed payments, and collections —factors that severely impact your score. After bankruptcy, as you demonstrate financial responsibility, your credit score can improve. Additionally, lenders may view you as a lower risk after bankruptcy because you will have $0 debt, and cannot file again for several years.

Put an end to your chaotic and stressful debt cycle; contact an attorney today to talk about your options to eliminate your debts.

Best,

Lucas Ruffing
Attorney
740-815-1114 (call/text)
LucasRuffingLaw@gmail.com (email)